The Board of Directors of Xylem Inc. (NYSE: XYL) today declared a third
quarter dividend of $0.1012 per share payable on December 19, 2012 to
shareholders of record on October 22, 2012. Xylem is a leading global
water technology company focused on addressing the world’s most
challenging water issues.

About XylemXylem (XYL) is a leading global water technology
provider, enabling customers to transport, treat, test and efficiently
use water in public utility, residential and commercial building
services, industrial and agricultural settings. The company does
business in more than 150 countries through a number of market-leading
product brands, and its people bring broad applications expertise with a
strong focus on finding local solutions to the world’s most challenging
water and wastewater problems. Launched in 2011 from the spinoff of the
water-related businesses of ITT Corporation, Xylem is headquartered in
White Plains, N.Y., with 2011 revenues of $3.8 billion and 12,500
employees. In 2012, Xylem was named to the Dow Jones Sustainability
World Index for advancing sustainable business practices and solutions
worldwide.

The name Xylem is derived from classical Greek and is the tissue that
transports water in plants, highlighting the engineering efficiency of
our water-centric business by linking it with the best water
transportation of all -- that which occurs in nature. For more
information, please visit us at www.xyleminc.com.

Forward-Looking StatementsThis document contains
information that may constitute “forward-looking statements.”
Forward-looking statements by their nature address matters that are, to
different degrees, uncertain. Generally, the words “anticipate,”
“estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target”
and similar expressions identify forward-looking statements, which
generally are not historical in nature. However, the absence of these
words or similar expressions does not mean that a statement is not
forward-looking.

These forward-looking statements include, but are not limited to,
statements about the separation of Xylem Inc. (the “Company”) from ITT
Corporation, the terms and the effect of the separation, the nature and
impact of the separation, capitalization of the Company, future
strategic plans and other statements that describe the Company’s
business strategy, outlook, objectives, plans, intentions or goals, and
any discussion of future operating or financial performance. All
statements that address operating performance, events or developments
that we expect or anticipate will occur in the future — including
statements relating to orders, sales, operating margins and earnings per
share growth, and statements expressing general views about future
operating results — are forward-looking statements.

Caution should be taken not to place undue reliance on any such
forward-looking statements because they involve risks, uncertainties and
other factors that could cause actual results to differ materially from
those expressed or implied in, or reasonably inferred from, such
statements. The Company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law. In
addition, forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
the Company’s historical experience and our present expectations or
projections. These risks and uncertainties include, but are not limited
to, those set forth in Item 1A in our Annual Report on Form 10-K, and
those described from time to time in subsequent reports filed with the
Securities and Exchange Commission.